Management and technology consultancy BearingPoint, has launched an in-depth study on artificial intelligence (AI), emphasising the critical need for organisations to transition into augmented organisations to stay competitive in the rapidly evolving market landscape. The research reveals a notable scepticism towards AI among executives in Ireland and the UK, potentially delaying the necessary transformation.
An augmented organisation leverages AI and other emerging technologies to enhance capabilities and operational efficiency, reinventing customer and employee experiences and, ultimately, disrupting its value chain to stay relevant in the market. The study, titled ‘AI-driven transformation: Becoming an augmented organisation,’ underscores AI adoption as a strategic imperative for long-term success. The research, which surveyed 700 C-suite executives across Europe (including 170 from Ireland and the UK), the US, and Asia, revealed key strategies and challenges in AI adoption.
Notably, there is scepticism towards AI among executives in Ireland and the UK, with 43% adopting a ‘wait and see’ approach. The study also found that only 38% of respondents in Ireland and the UK are directly involved in AI-related decision-making, but a significant portion is well-informed about AI initiatives.
Governance remains a focus area for Ireland and UK respondents, with 46% still contemplating the best approach to AI governance. 82% of these respondents believe that establishing an effective AI cross-functional task force is crucial for becoming an augmented organisation.
Worryingly, the study highlights that only 19% of C-suite executives in Ireland and the UK are actively adopting AI technologies with almost one in three organisations either having no AI implementations or have not started considering AI technologies. This is despite that fact that data readiness among UK&I respondents is relatively high, with only 1% unsure about their data readiness, 42% mostly ready, and 24% fully ready.
“AI is a present-day necessity, and the pace of AI innovation and its adoption by competitors and consumers is accelerating,” said Stephen Redmond, director, head of data analytics & AI at BearingPoint. “Our study indicates that organisations that fail to integrate AI effectively are at significant risk of falling behind competitors already leveraging AI to enhance productivity, drive innovation, and deliver superior market experiences. AI should be seen not just as a tool, but as a strategic asset that drives new value propositions and market differentiation.”
Despite prioritising training, findings from the BearingPoint study indicate that only 38% of organisations in Ireland and the UK have a strategy for adopting Al and managing the changes it brings.
Four pillars for transitioning to an augmented organisation
The study serves as a comprehensive guide for C-suite executives, detailing how to strategically organise and equip their organisations to harness the full potential of emerging technologies. It underscores the importance of acquiring new skills and implementing innovative processes to adopt AI at a competitive market pace. Four key pillars are central to transitioning to an augmented organisation.
- Establishing effective AI governance:
For C-suite executives, establishing AI governance is vital for becoming an augmented organisation, and nearly half of the organisations surveyed are still thinking about the best approach to governance and decision-making for AI. According to the study, cross-functional governance framework is essential to align AI initiatives with business objectives and ensure ethical use. It involves setting up a dedicated AI oversight committee to monitor and guide AI deployments across various departments. It also includes establishing clear policies and protocols to manage data privacy, security, and compliance, ensuring that AI applications are not only effective but also responsible and transparent.
- Optimising AI investments:
Strategically prioritising AI investments is crucial to achieving scalable impacts and the best return on investment. It means identifying high-impact areas where AI can drive significant improvements and allocating resources accordingly. According to the study, organisations should adopt a data-driven approach to measure the effectiveness of AI initiatives, continuously assessing and optimising their AI portfolio to maximise efficiency and innovation.
- Empowering the workforce:
From the base to the C-suite, fostering a culture of continuous learning and adaptation is vital to embrace AI-driven change. It includes providing ongoing training and development programs to enhance AI literacy and skills across the organisation. Encouraging collaboration between employees and AI systems can lead to more innovative solutions and a more agile workforce that is better prepared for the future of work.
- Building trust in AI:
Addressing technological, security, legal, and ethical challenges is essential to ensure AI integration and acceptance within the organisation. According to the survey, data and people are the central issues and priorities for C-suite executives in establishing trust in AI. Building trust in AI requires transparent communication about how AI systems make decisions and how they impact employees and customers. Establishing robust cybersecurity measures, adhering to legal standards, and fostering an ethical AI culture can mitigate risks and enhance the credibility and reliability of AI solutions.
AI is both a shield, to protect and optimise current operations, and a sword, to drive innovation and competitive advantage. “It’s time for businesses to stop waiting and start acting. Embrace AI, become an augmented organisation, and secure your place in the future of business,” said Redmond.
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